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  • wickedwitchhere_3 wickedwitchhere_3 Dec 30, 2010 8:43 AM Flag

    Huizopa project sold

    Press Release Source: Brigus Gold Corp. On Thursday December 30, 2010, 8:30 am

    HALIFAX, Nova Scotia--(BUSINESS WIRE)-- Brigus Gold Corp. (“Brigus” or the “Company”) (TSX:BRD.to - News) (NYSE Amex: BRD) is pleased to advise that it has reached a settlement agreement in connection with its Huizopa exploration project located in the Sierra Madre Occidental mountains in Chihuahua, Mexico.



    In connection with the settlement agreement, the Company has entered into a related sale agreement pursuant to which Brigus has sold its 100% interest in its Mexican subsidiary, Minera Sol de Oro, S.A. de C.V. and its joint venture in the Huizopa Project to the Cormack Capital Group, LLC for proceeds of US$3.5 million, payable over a five-year term, while the Company retains a 3% Net Smelter Royalty (“NSR”) over future production from the Huizopa Project. Cormack can reduce Brigus’ NSR to 2% by making a US$1.0 million payment to the Company and may also elect to pay up to 40% of the purchase price through the issuance of common shares in a publicly traded company listed on a recognized U.S. or Canadian national stock exchange. In addition, Brigus will receive a production bonus payment of US$5.0 million within one year of the commencement of commercial production at the Huizopa Project.



    The dispute related to the Huizopa Project pre-dated the June 2010 merger between Apollo Gold Corporation and Linear Gold Corp. to form Brigus Gold Corp. Settlement of the dispute allows Brigus to focus on its advanced Canadian asset portfolio while maintaining a significant royalty in the prospective Huizopa Project and receiving payments of up to US$9.5 million. Brigus’ advanced Canadian asset portfolio includes the Company’s flagship Black Fox Complex, including the producing Black Fox Mine, as well as the Company’s Goldfields Project, consisting of the Box and Athona gold deposits, where Brigus expects to make a production decision in 2011.



    About Brigus Gold



    Brigus is a growing gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates the wholly owned Black Fox Mine in the Timmins gold district of Ontario, Canada. The Black Fox Complex encompasses the Black Fox Mine and Mill, and adjoining Grey Fox-Pike River property, all in the Township of Black River-Matheson, Ontario, Canada. Brigus is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus holds a 100% interest in the Ixhuatan Project located in the state of Chiapas, and a 3% NSR interest in the Huizopa Project, an early stage, gold-silver exploration project located in the state of Chihuahua. In the Dominican Republic, Brigus Gold has a joint venture covering three mineral exploration projects.

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    • BRD will have to execute, pure and simple. Their quarterly filings will tell the story better than anything else. Let's just hope gold continues to get more expensive. That would cover up all kinds of execution errors.

      I have been on this roller coaster for about a year now. I started with Linnear. Definitely not for the faint of heart.

      Happy New Year to all!

      Chief

    • can't disagree with your points. we just all tend to get bogged down
      when we look too closely because we're looking from the oputside in. usually I tend to follow the money, the trend etc. and hope I'm right.
      Happy, healthy new year.

    • investyes

      Even having sold much my position I still own considerably more shares than you do. But that is neither here nor there.

      I agree with you in large part. I have always been convinced that the large holders knew something and held for a reason. Over time some of the large holders changed. Some are there because Apollo was a client and paid shares for services.

      Would it not be nice for Brigus to have been telling the markets its' story along with having a confident base of institutional holders?

      Can Brigus lift off from here without telling its' story? Sure, and I hope it does. Am through selling, probably, but will continue to post negative comments but not as frequently as in the past. If and when I am completely out, I will not be back to bash the company as that is not my style.

      However, I expect Brigus will be taken over and I will then make a decision to hold or sell if it is a non cash offer.

    • gwo, I own 45,000 shares and admittingly know maybe 1/8 of the Brigus compared to you. however, I know how to make money, and don't get caught up in the details that you do because they're not relevant in this case IMAO. that is not meant as an insult. just a fact.

    • Unfortunately,tj.. I think you are 100% on the mark.

      Off the subject, But I owned a taco shop in TJ for a number of years, about 40 yrs ago.

    • I haven't liked the Huizopa project for a number of years. Any sort of meaningful production was years away and with the way things are going in Mexico I figured that as soon as it started producing anything of value the Mexican government would have nationalized it. Considering that their Cantarell oil field has basically collapsed and that the amount of remittances from migrant worker in the U.S. has also fallen dramatically I would say that the only thing that has prevented the complete economic collapse of Mexico is the current high price of oil. In a relatively short amount of time I believe that the govt. of Mexico will be grabbing any sort of asset that they possibly can that has any revenue value.

    • I don't believe anything in particular and I study the stocks in my portfolio in many ways. In some cases I speak directly with management and in others I go along for the ride.

      In the case of Nanna and his off the cuff remarks, it was very clearly his opinion and I understood that. BUT, he did have some earlier exploration information that he based his comment on. Sometimes, how its stated is more important than who says it.

      I have bought and sold this thing for a few years, while building my base holdings at low prices,and have made money on every trade, thus reducing my risk immensely which allows me to ride this up to much higher returns without concerns or stress.

      I still see $10 by the end of this year because they are going to hit their stride and they have friends to help move the price as the good news comes out. I've seen what sprott and others can do for a stock like this and they believe in it.

    • wicked, you will probably never understand why I don't think direct contact is helpful.

      I am not seeking inside information nor do I want to learn anything by accident that might be considered such.

      It should be obvious that I have sought for management to tell its' story to all, not just to me.

      Nanna, regaled you with his personal opinion of what will be found underground. Did this help or hurt your objectivity?

      You may believe management does not know what I think, but you are probably wrong about that too.

    • Yet, you refuse to keep in direct contact with management........I call BS.

    • Cash is trash and yet Brigus accepts cash over a five year period. Yes it gets a royalty payment which can be reduced by the payment of cash at some future date perhaps 7 to 10 years from now.

      The payment of cash one year from the start of production is also future paper, of probable little value.

      Don't agree? Then why do some of you keep insisting gold will be $2,400 or more an ounce in a few years?

      Can't have it both ways. Part of gold going up is the value of the dollar going down.

      The royalty is the only thing Brigus takes away from this project, so aptly named by a poster, "The road to no where."

      Time for gold companies to ask for future payments in ounces of gold.

      • 2 Replies to gwohanka
      • To keep the Huizopa franchise, Brigus was required to do continued development on a mine at that property. That means current cash (trash) for Huizopa at the expense of drilling and production at Black Fox and bringing Box mine into production over the next two years. If Huizopa is to show no returns for next 7 to 10 years, it is a relative waste of cash (trash). Cutting expenses for speculative properties so that real current properties can be exploited while the gold price is high makes all the sense in the world. Looks like Brigus management has found a way to have it both ways. Spending cash (trash) which is going down in value for current gold production which keeps going up in value.


        What new stock did you buy?

      • I like your thinking ...

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